Mindspace REIT files for IPO

Mindspace Business Parks REIT, sponsored by K Raheja Corp. and private equity firm Blackstone, has filed documents for an initial public offering (IPO). The offering comprises a fresh sale of units worth Rs 1,000 crore and an offer for sale by existing unit holders. The IPO size is estimated at Rs 3,500 crore.

Blackstone Real Estate Partners is one of the key investors in the REIT. It had acquired a bunch of commercial real estate assets of K Raheja Corp in Mumbai, Hyderabad, and Pune in 2017. The company has set up its India office in 2005 and has since invested about US$6 billion in private equity and real estate deals. This includes about USD$2.7 billion across 19 transactions in the real estate sector and now manages the largest portfolio of office parks in India. This will be the second REIT offering after Embassy Office Parks REIT, a joint venture between Bengaluru-based Embassy Group and Blackstone, in March 2019.

Mindspace will use the proceeds from the fresh issue of units for repaying its debt, redeeming its preference shares and for general corporate purposes. The REIT has hired 13 bankers. Morgan Stanley India, Axis Capital, Kotak Mahindra Capital, JM Financial, DSP Merrill Lynch, Citigroup Global Markets, ICICI Securities, HDFC Bank, Ambit Capital, UBS Securities India, Nomura Financial Advisory and Securities (India), and CLSA India are the merchant bankers managing the IPO.

Shardul Amarchand Mangaldas & Co. is the legal counsel to Mindspace REIT, its sponsor, and the selling unit holders. Sidney Austin LLP is the international counsel to the REIT offering. Khaitan & Co is the legal counsel representing the merchant bankers.


The company owns a portfolio of properties in India’s four key office markets. Its portfolio has a total leasable area of 29.5 million square feet. This is one of the largest Grade-A office portfolios in India. Of the total, 19.8 million sq. ft. is completed area, 6.1 million sq. ft. is under construction and 3.6 million sq. ft. is for future development. Moreover, it as five integrated business parks with amenities, such as restaurants and outdoor sports arenas, and five independent offices. It also has 173 tenants such as Accenture, Qualcomm, JP Morgan, Amazon, Schlumberger, UBS, Capgemini and Facebook. No single tenant contributed more than 8.7 per cent of its gross contracted rentals as on June 2019.

REIT clocked a net profit of Rs 515.4 crore for 2018-19 on revenue from operations of Rs 1,431.6 crore. Its net profit was Rs 161 crore in the year ended March 2018 on revenue of Rs 1,263.1 crore.